Company Number: SC680670

Analysis Date: 2025-07-20 13:32 UTC

1. Risk Rating: MEDIUM
   The company shows a sharp decline in net current assets and shareholder funds from £5,890 in 2023 to £852 in 2024, indicating a significant erosion of working capital and equity within one year. While still positive, this weakening financial position raises moderate solvency and liquidity concerns, especially given the small scale of operations.

2. Key Concerns:

• Declining Net Current Assets: A drop from £5,890 to £852 suggests reduced buffer to meet short-term obligations and potential cash flow stress.
• Low Share Capital and Equity: Share capital is nominal at £2, and shareholders’ funds remain very low, indicating minimal financial cushion.
• Limited Scale and Financial Transparency: As a small company filing abridged accounts without audit or income statement disclosure, there is limited visibility on profitability and operational performance, increasing uncertainty.

3. Positive Indicators:

• Current Assets Exceed Current Liabilities: Even with decline, current assets (£8,789) exceed current liabilities (£7,937), implying the company can meet short-term debts as of the latest accounts.
• Timely Filings and Compliance: No overdue accounts or confirmation statements show regulatory compliance and good governance practices.
• Stable Ownership and Management: Directors and persons with significant control have been consistent since incorporation, suggesting stable leadership.

4. Due Diligence Notes:

• Investigate causes behind the sharp reduction in net current assets and retained earnings between 2023 and 2024.
• Obtain or review management accounts or profit and loss data to assess operational profitability and cash flow dynamics.
• Confirm no contingent liabilities or off-balance sheet obligations that could impair solvency.
• Clarify the nature and terms of current liabilities, in particular if any are related party or short-term borrowings.
• Assess customer and supplier concentration risk given the niche SIC code (repair and maintenance of aircraft and spacecraft) and small employee base.